Are Investors Undervaluing Integer (ITGR) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Integer (ITGR). ITGR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.12, while its industry has an average P/E of 30.86. Over the past year, ITGR's Forward P/E has been as high as 22.21 and as low as 15.25, with a median of 18.89.
ITGR is also sporting a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ITGR's industry currently sports an average PEG of 2.34. Over the last 12 months, ITGR's PEG has been as high as 1.33 and as low as 1.27, with a median of 1.32.
We should also highlight that ITGR has a P/B ratio of 2.24. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ITGR's current P/B looks attractive when compared to its industry's average P/B of 3.48. Over the past 12 months, ITGR's P/B has been as high as 2.92 and as low as 2.05, with a median of 2.43.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ITGR has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.23.
Finally, investors will want to recognize that ITGR has a P/CF ratio of 7.83. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.43. Within the past 12 months, ITGR's P/CF has been as high as 13.19 and as low as 6.59, with a median of 8.26.
These are just a handful of the figures considered in Integer's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ITGR is an impressive value stock right now.
Click to get this free report
Integer Holdings Corporation (ITGR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.